Public debt management in Poland. Implications for the country’s economic stability
DOI:
https://doi.org/10.26485/SPE/2020/116/11Keywords:
public debt, sovereign debt management, budget deficitAbstract
Background: The government debt portfolio is usually the largest financial portfolio in the country. It often contains complex and risky financial structures and can generate significant risk to the state budget and the country’s financial stability. Therefore, governments are required to perform sound risk management and sound public debt structures to limit exposure to market risk, debt financing or rolling risk, liquidity risk, credit, settlement, and operational risk. In recent years, the debt market crises have highlighted the importance of sound public debt management practices and related risk, and the need for an effective and well-developed domestic capital market. This may reduce the vulnerability of the economy to adverse economic and financial shocks. However, it is also important for the government to maintain a macroeconomic policy that ensures sound fiscal and monetary management.
Research purpose: The aim of the research is to present the theoretical and practical aspects of extremely important issues such as public debt management in Poland, and to indicate the most important implications for the economic stability of the country on the example of the Polish economy.
Methods: The study uses a research method based on literature studies in the field of macroeconomics, economic policy and finance, as well as statistical analysis of the studied phenomenon.
Conclusions: Effective public debt management can reduce the vulnerability of the economy to financial threats, contribute to the macroeconomic stability of the country, maintain debt stability, and protect the government’s reputation among investors.
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